Chilean firm Pacífico Sur takes full ownership of Sun Dreams

Chile’s Nueva Inversiones Pacífico Sur has reached a settlement with Sun International under which the former will hold 100% of the shares in South African operator Sun Dreams, and therefore take full ownership of the business. 

The two partners had been locked in a 1.5 billion rand dispute after Pacifico agreed to buy a 14.94% stake in Sun Dreams but failed to close the deal.

Under the agreement, Pacífico Sur —which already holds a 35% stake in Sun Dreams— has undertaken to pay Sun International US$160 million for the remaining 65%.

The Fischer brothers have agreed to pay a variable amount, subject to certain revenue forecasts should certain gaming licenses be renewed.

Pacífico Sur President Claudio Fischer, commented: "Fortunately, we are currently facing the challenging circumstances the industry is undergoing with a solid financial position, which enables us to take advantage of growth opportunities in a business we already know and where we stand out as a serious and responsible firm." 

Pursuant to the relevant documents filed with Chile’s Securities Market Commission (CMF), "the closing of the transaction is subject to customary terms and conditions, including the approval by gambling authority Superintendencia de Casinos de Juego, and other relevant business permits for both shareholders."

Sun Dreams is currently the largest casino operator in Latin America, with business units in Chile, Peru, Panama, Argentina, and Colombia. The company’s business activities include land-based and online gaming, hotel, restaurants convention center among others related to to hospitality and tourism.